CBI Layoff Rings as Company Suffer Deep Financial Crisis After Allegations of Sexual Misconduct

Amidst the sexual misconduct allegations which have pushed the Confederation of British Industry (CBI) down to almost zero, the UK business lobby group is making plans to lay off some employees as the company is experiencing the worst time since the company came into existence.

On Thursday, June 1st, 2023, staff were instructed in a meeting that the management is looking for ways to trim costs to boost the stability of the finance of the company. It was said in the meeting that the company is looking at using voluntary redundancies first to trim costs.

A spokesperson from CBI confirmed that the company had to make “difficult decisions” including cutting its salary base by a third, along with other “cost-saving measures”. “It will be a smaller and refocussed organization in the future,” they said.

Looking at possibilities to bring the lobby group alive, the management on Wednesday detailed new culture and governance that will be used for the reformation of the company. The policy will kick off after the general meeting with members on the 6th of June 2023.

“With our prospectus for a renewed CBI now published, we will work with our staff and members on our core mission to help UK business succeed,” the spokesperson said. “We believe there is a strong basis for our members to continue to back us at our EGM.”

Although, the future of the CBI can't be predicted after the lobby group lost more than 50 high-profile business members who suspended ties with the company and the majority quit after claims of sexual misconduct were reported first by the Guardian.

In CBI, membership holds the majority of the company's wealth with a record of £23 million in 2021 of which £22m was obtained from fees of membership.

Some of the employees of CBI were caught unaware of the speed and magnitude of the layoffs that followed after the loss of high-profile members.

An internal investigation into allegations of sexual harassment, sexual assault (including rape), and drug use has reportedly left employees feeling depressed.

A comment from one of the affected employees said, “It’s been awful, and it feels unfair that some people’s behavior will cost others, who have done nothing wrong, so much.” 

It was also reported that after the incident, employees were helping each other in terms of finances and looking out for new jobs.

A spokesperson for the CBI said: “Following a series of member resignations, we know that the CBI will need to be smaller and refocused in the future. The board has sought advice on matters of restructuring as may be appropriate, as any responsible board would.”